When most business owners think about commercial insurance, they think about commercial property insurance, general liability, and sometimes commercial vehicle insurance. What many people don't think of, however, is the importance of cyber liability coverage for businesses. If you have never heard of cyber liability insurance, you may not really understand what it is or how it can help your company. Here's a look at what you need to know.
What Is Cyber Liability Insurance?
You can't really appreciate how cyber liability insurance can help your business until you understand what this kind of insurance is. Cyber liability insurance offers coverage for losses associated with server and network breaches, data theft, and similar issues.
Cyber liability insurance has never been more important for business owners. With data breaches becoming a greater threat than ever, businesses need to have protections in place to ensure that they are financially protected in the event that the company becomes a target for data thieves.
How Can Cyber Liability Insurance Help Your Customers?
Cyber liability insurance provides coverage for third-party losses. The third-party coverage offered under these policies is designed specifically for compensating your customers for losses associated with data breaches.
Third-party coverage will pay for things such as legal expenses and lawsuit settlements to your customers if you are sued for a data breach. It can also help to cover the fees incurred by your customers if they are billed for new cards from their credit card companies due to the breach.
How Can Cyber Liability Insurance Help Businesses?
When you opt for a cyber liability insurance policy with first-party coverage included, you'll get additional protections that will help your business directly. First-party coverage offers reimbursement for losses that your business incurs due to a data breach.
For example, you can seek reimbursement for lost revenues due to the data breach, the cost of forensic investigations and customer notifications, as well as the expenses related to any additional security measures you have to put in place to protect your infrastructure from future breaches.
If you have to pay for customers to subscribe to credit monitoring or your company is subject to fines due to the breach, your first-party coverage can pay for those expenses as well. You'll also get some reimbursement for ransomware payments, fraudulent bank transfers, and other similar costs associated with the breach.
Talk with your local cyber liability insurance carrier today for information about your coverage options and to find the policy that's right for your business.